However, the most dangerous thing is that in the time depth of such measures of forced commitment of the amount of the leases, the forced extension of the duration of the leases is fatally added. The combination of these two measures constitutes the inexorable “Rental Estate”, which was valid for decades in our country due to the Asia Minor Disaster and the Second World War, which literally destroyed and ruined the building potential of our country.
the adjustment of rents for commercial and professional leases, especially in view of the particular global conditions, which have a negative effect on the economy. The combination of the COVID-19 pandemic, the need for a rapid change in the energy production model and the geopolitical crisis caused in Ukraine caused a global increase in international trade prices, which in turn led to high inflation and a decrease in purchasing power of consumers. In this context, the rents of the commercial and professional leases are adjusted, weighting the current inflation.
Proposed provision
Article 6 (96)
Determining the upper limit of rent adjustment for commercial and professional real estate leases for the year 2023
- For commercial real estate leases that fall within the scope of p.d. 34/1995 (A’ 30), from January 1, 2023 until December 31, 2023, an adjustment of the rent amounting to a maximum of three percent (3%), on the rent for the year 2022, is allowed.
- Paragraph 1 does not apply to leases with a lessor:
a) Real Estate Investment Company, of par. 1 of article 21 of Law 2778/1999 (A’ 295), or
b) companies, whose majority of registered shares, shares or shares or voting rights belong to Alternative Investment Organizations, which are managed by Alternative Investment Organization Managers, of Law 4209/2013 (A’ 235) and the statute whose head office is not located in a non-cooperative state in the tax sector, in accordance with Article 65 of Law 4172/2013 (Income Tax Code, A’ 167), and in a third country characterized by the European Commission as high risk due to money laundering activities or financing of terrorism, as defined in Article 16A of Law 4557/2018 (A’ 139) and Commission Regulation (EU) 2016/1675 of July 14, 2016, supplementing Directive (EU) 2015/849 of the European Parliament and the Council with the identification of high-risk third countries characterized by strategic deficiencies (L 254),
c) business operating a shopping center, of article 2 of the decision of the Deputy Minister of Economy and Finance under data 1093809/8296/1161/Β0014/15.10.2007 (B’ 2022), which has, as a minimum, a total area of fifteen thousand (15,000) sq. m. at one or more levels or,
d) companies in the share capital of which the State participates at a rate of one hundred percent (100% ), as well as the subsidiaries of these companies.”
POMIDA: Unilateral and socially unfair regulation…
POMIDA considers the extension of the 3% ceiling on commercial leases for 2023 to be “unilateral and socially unfair”, in a letter to the Prime Minister and the competent Minister of Development, Adonis Georgiadis. POMIDA protested because the measure was announced without any previous discussion with the owners, and without any counterweight in their favor, when on the side of the professionals favored by this regulation, a lot of wealthy providers have been received and are being received measures to strengthen them.
POMIDA believes that instead of prolonging this unfair and dangerous measure, the best direct and effective intervention that the government can and should do of the tenants, it is finally the drastic rationalization of the tax burden on small and medium owners of rented commercial properties and not the continuous taking of unilateral measures against them!
The full text of the letter is as follows:
To the Prime Minister Mr. Kyriakos Mitsotakis
To the Minister of Development Mr. Adonis Georgiadis
In Athens, 6.1 2. 2022
ISSUE: Unilateral and socially unjust extension of the 3% ceiling on commercial leases!
Dear Mr. President, Mr. Minister
As you know, with article 121 of Law 4926/2022, a maximum rate of increase (3%) of rents was imposed as a temporary measure on real estate leases subject to in the category of commercial leases for the year 2022. It should be noted that this binding measure was imposed exclusively at the expense of small and medium-sized owners of shops and offices, while all large business and investment property.
Without any prior discussion with the owners, we were surprised to hear today the announcement that the unilateral and socially unfair this arrangement will be extended for the next year 2023!
This measure, without any counterweight in favor of its victims, on a personal basis brings a significant number of landlords to despair which of the rents they collect are obliged to cover the heavy income tax, of which you have not changed in the slightest the “confiscating” literally scale of rents, which reaches up to 45% without tax, the ENFIA which you dramatically increased for those with assets over 400,000 euros, the loan obligations of those who are struggling to be consistent with them, even though interest rates have increased significantly recently and theexpensive upcoming mandatory energy upgrade of their buildings, on penalty of deflating their value. On the contrary, on the side of the professionals favored by this regulation, a lot of rich measures have been taken and are being taken to strengthen them.
Our view, based on our experience over the last 40+ years, is that this marketregulates itself much more quickly and efficiently through consultation of the interested parties,rather than any kind of government interventions, which, although temporary, inevitably carry within them the seed of the long-term and destructive tenement practices of the past, which literally destroyed its building potential of our country…
That is why we believe, Mr. President, Mr. Minister, that instead of prolonging this unjust and dangerous measure, the best immediate and effective intervention that you can and should do in favor of tenants, is finally the drastic rationalization of the tax burden on small and medium owners of rented commercial properties and not the continuous taking of unilateral measures against them! p>
At your disposal for any clarification and cooperation
The President The Secretary General
Stratos I. Paradias Tasos G. Vappas
Lawyer A.P. – President of UIPI Lawyer A.P. – y.D.N.
